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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (64069)	5/29/2002 1:39:37 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

Novellus Raises 2nd-Qtr Profit Forecast to 8c-Share (Correct) By John Stebbins quote.bloomberg.com Novellus Raises 2nd-Qtr Profit Forecast to 8c-Share (Correct) (Corrects to remove reference to corporate confidence in sixth paragraph.) San Jose, California, May 28 (Bloomberg) -- Novellus Systems Inc., whose equipment builds circuits in semiconductors, said second-quarter earnings will exceed forecasts as cost reductions boost profitability. Profit will fall to 8 cents a share from 40 cents in the year- earlier quarter, compared with an April 15 forecast for 6 cents, the company said on a conference call with analysts and investors. Novellus reiterated that revenue will drop to $220 million, Treasurer Robin Yim said in an interview. Novellus shares slipped after the call because the company didn't give a third-quarter forecast, said Frederick Wolf, an analyst at Adams, Harkness & Hill. Investors were expecting a more optimistic outlook after Semiconductor Equipment and Materials International said the industry's April book-to-bill ratio rose to 1.20. It was the second straight month that orders beat shipments. ``People are looking beyond the second quarter and they were disappointed when the company didn't provide'' a forecast, Wolf said. He rates the shares, which he doesn't own, ``buy.'' The shares of the San Jose, California-based company fell as much as 3 percent to $45.26 after the forecast. They had gained 49 cents to $46.67 in regular U.S. trading. The stock has increased 18 percent this year. Analysts on average expected Novellus's profit to be 7 cents a share in the current period, according to a survey by Thomson First Call. In last year's second quarter, net income was $59.2 million on sales of $376.9 million.